-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QMHpAni17sR3Uh5m73P5h06JDOuWwplCygjGhTXe9gkilvtEykUwYiU90ax3zLp5 EImJXEmVDjh4XrdaxLX9Pg== 0000007623-07-000010.txt : 20070717 0000007623-07-000010.hdr.sgml : 20070717 20070717151005 ACCESSION NUMBER: 0000007623-07-000010 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070531 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20070717 DATE AS OF CHANGE: 20070717 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ARTS WAY MANUFACTURING CO INC CENTRAL INDEX KEY: 0000007623 STANDARD INDUSTRIAL CLASSIFICATION: FARM MACHINERY & EQUIPMENT [3523] IRS NUMBER: 420920725 STATE OF INCORPORATION: DE FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-05131 FILM NUMBER: 07984014 BUSINESS ADDRESS: STREET 1: P O BOX 288 CITY: ARMSTRONG STATE: IA ZIP: 50514 BUSINESS PHONE: 7128643131 MAIL ADDRESS: STREET 1: P O BOX 288 CITY: ARMSTRONG STATE: IA ZIP: 50514 8-K 1 may078kn.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) July 16, 2007 ART'S-WAY MANUFACTURING CO., INC. (Exact Name of Registrant As Specified In Its Charter) Delaware State or Other Jurisdiction of Incorporation 0-05131 42-0920725 (Commission (IRS Employer File No.) Identification Number) P.O. Box 288 Armstrong, Iowa 50514 (Address of Principal Executive Offices) (Zip Code) (712) 864-3131 (Registrant's Telephone Number Including Area Code) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2 below): ___ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ___ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ___ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ___ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CRF 240.13e-4 (c)) Form 8-K Item 2.02 Results of Operations and Financial Condition. Art's-Way Manufacturing Co., Inc., (the "Company") issued a press release on July 16, 2007, with earnings information on the Company's fiscal quarter and six months ended May 31, 2007. The press release is furnished with this Form 8-K as Exhibit 99.1 Item 9.01 Financial Statements and Exhibits. Exhibit 99.1. Press Release issued by the Company on July 16, 2007. The information contained in this Current Report on Form 8-K under Item 2.02, including Exhibit 99.1 referenced in Item 9.01, is being "furnished" pursuant to Item 2.02 of Form 8-K and, as such, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in Item 2.02 of this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ART'S-WAY MANUFACTURING CO., INC. Date: July 17, 2007 By: /s/ Carrie L. Majeski Carrie L. Majeski Chief Financial Officer EX-99 2 exhib991.txt Exhibit 99.1 NASDAQ:ARTW CONTACT: Carrie Majeski (712) 864-3131 ART'S-WAY SECOND QUARTER AND 6 MONTHS RESULTS ARMSTRONG, IOWA - Art's-Way Manufacturing Co., Inc. today (July 13, 2007) released the following results for the fiscal quarter and six months ended May 31, 2007. Highlights: " Year to date net sales increased $2,560,000 compared to the same period a year ago. " Year to date gross profit increased $518,000 compared to the same period a year ago. (All figures in thousands of dollars except per share amounts) Quarter Ended May 31, 2007 May 31, 2006 Net Sales . . . . . . . . . . . . . . . $ 5,699 $ 4,112 Gross Profit . . . . . . . . . . . . . 1,685 1,289 Income from Operations . . . . . . . . 738 310 Interest and Other Expense. . . . . . (99) 75 Income before Income Taxes . . . . . . 837 235 Income Tax Expense (Benefit). . . . . . 279 82 Net Income . . . . . . . . . . . . . . 558 153 Basic Income Per Share (a). . . . . . . $ .28 $ .08 Diluted Income Per Share (b) . . . . . .28 .08 Six Months Ended May 31, 2007 May 31, 2006 Net Sales . . . . . . . . . . . . . . . $ 10,974 $ 8,414 Gross Profit. . . . . . . . . . . . . . 3,183 2,665 Income from Operations . . . . . . . . . 1,245 801 Interest and Other Expense . . . . . . . (176) 141 Income before Income Taxes . . . . . . . 1,421 660 Income Tax Expense (Benefit) . . . . . . 483 235 Net Income . . . . . . . . . . . . . . . 938 425 Basic Income Per Share (a) . . . . . . . $ .47 $ .22 Diluted Income Per Share (b) . . . . . . .47 .21 (a) Basic income per share based on the weighted average number of shares outstanding 1,978,176 and 1,972,796 for the quarter; and 1,978,176 and 1,968,451 for the six months ended May 2007 and 2006, respectively. (b) Diluted income per share based on the weighted average number of shares outstanding 1,983,182 and 1,979,570 for the quarter; and 1,982,614 and 1,977,619 for the six months ended May 2006 and 2005, respectively. Our consolidated net sales for the six months ended were $10,974,000, representing a 30% increase compared to the same period one year ago. A majority of this increase was due to the inclusion of Art's-Way Scientific, Inc., net sales of $2,346,000, for the six months just ended. Art's-Way Scientific, Inc. was acquired in August of 2006 and therefore was not included in last year's six months results. Art's-Way Manufacturing had revenues totaling $6,374,000 for the six months, compared to $6,929,000 for the same period in 2006. This decrease was due primarily to a reduction in sales of blowers to our OEM dealers. Art's-Way Vessels had revenues totaling $2,254,000 for the six months ended, compared to $1,485,000 for the same period in 2006. Art's-Way Vessels has succeeded in increasing sales since our acquisition by improving on time delivery of our quality product to new and existing customers. Consolidated gross profit increased during the quarter to 30% compared to 28% in the first quarter. Year to date gross profit is 29% compared to 32% in 2006. When we purchased Art's-Way Scientific we also purchased their backlog and had to honor pricing from the prior owners. Art's-Way Scientific's gross profit was 20% for the first quarter of 2007. Year to date, their gross profit has now increased to 28%. Art's-Way Manufacturing's gross profit was 28% while Art's-Way Vessel's was 34% year to date. Operating expenses for the quarter decreased $32,000 compared to 2006. As a percent of sales, operating expenses decreased by seven percentage points 17% in 2007 compared to 24% in 2006. Year to date operating expenses are 18% compared to 22% in 2006. Art's-Way Manufacturing's year to date operating expense as a percentage of sales was 22%, Art's-Way Vessel 11% and Art's-Way Scientific was 14%. Interest expense year to date remains consistent. Other income increased by $312,000 in 2007 compared to 2006 as a result of our accounting for the fire and insurance recoveries in Monona, Iowa. As previously disclosed on January 16th, 2007, one of our buildings in Monona, Iowa, was completely destroyed by fire. The building housed the production and offices for Art's-Way Scientific. The 36,000 square foot building was a stick built structure with steel siding. We were insured for the loss of the building, its contents as well as the disruption in business. We are currently working with our insurance company to settle the claim. At this time we have received $500,000 towards the claim and we have booked a receivable for the estimated loss of the building of $983,000. We have incurred costs in excess of $900,000 related to the fire, including $334,000 in losses of fixed assets. We are currently working from one of our other buildings in Monona, Iowa. We have started construction on our replacement building. The new building will be located in Monona on the same site as the building that was destroyed. It is our intent to be in a new building by September 2007. We continue to manufacture buildings and have not lost any orders to date. The order backlog as of May 31, 2007 is $12,105,000 compared to $5,790,000 one year ago. Art's-Way Manufacturing's order backlog as of May is $4,325,000 compared to $3,099,000 in 2006, Art's-Way Vessels backlog is $1,682,000 compared to $2,691,000 in 2006, and Art's-Way Scientific's backlog is $6,097,000. Art's-Way manufactures and distributes farm machinery niche products including animal feed processing equipment, sugar beet, land maintenance equipment, finished mowing, crop shredding equipment, plows and seed planting equipment. Art's-Way also produces haylage machinery for original equipment manufacturers (OEM's). After market service parts are also an important part of the Company's business. We have two wholly owned subsidiaries, Art's-Way Vessels Inc. manufactures pressurized tanks and vessels and Art's-Way Scientific Inc. manufactures modular animal confinement buildings and modular laboratories. This news release includes "forward-looking statements" within the meaning of the federal securities laws. Statements of anticipated future results are based on current expectations and are subject to a number of risks and uncertainties, including but not limited to, quarterly fluctuations in results, customer demand for the Company's products, domestic and international economic conditions, the management of growth and other risks detailed from time to time in the Company's Securities and Exchange Commission filings. Actual results may differ markedly from management's expectations. The Company cautions readers not to place undue reliance upon any such forward-looking statements. -----END PRIVACY-ENHANCED MESSAGE-----